The exemption covers income tax only: USC can still apply. Revenue compares the exemption, marginal relief and your normal credits and gives you whichever is best, so check your end-of-year statement.
Quick facts
- Single limit
- €18,000
- Couple limit
- €36,000
- Per child
- +€575 (first two), +€830 after
- Marginal relief
- Up to twice the limit
- Age Tax Credit
- €245 single, €490 couple
- Covers
- Income tax, not USC
The exemption
"You may not have to pay Income Tax if you, or your spouse or civil partner, are aged 65 or over." The limits: "Single, widowed or a surviving civil partner €18,000 Married or in a civil partnership €36,000".
With dependent children, the limit rises by "€575 per child for your first two children and €830 per child for each additional child." Only one of a couple needs to be 65.
Marginal relief, just above the limit
It's available where "you, or your spouse or civil partner, is over 65 and your total income is less than twice the exemption limit." "Marginal relief restricts your Income Tax payable to 40% of the difference between your total income and your exemption limit."
In Revenue's example, a married man on €38,000 would owe €1,110 normally. "Revenue will grant Jim marginal relief and his Income Tax liability for 2025 will be €340."
The Age Tax Credit
"Single, widowed, surviving civil partner or singly assessed €245 Jointly or separately assessed €490". "You are automatically granted the Age Tax Credit the year you (or your spouse or civil partner) turn 65." If it isn't on your tax credit certificate, add your date of birth in myAccount.
USC and PRSI
"This exemption applies to Income Tax only. It does not apply to Pay Related Social Insurance (PRSI) or Universal Social Charge (USC) ." At 70, or with a medical card, you may pay a reduced rate of USC: see our reduced USC guide.
Common questions
Do over-65s pay income tax in Ireland?
Not if your total income is €18,000 or less (single) or €36,000 or less (married or civil partners), and you or your spouse are 65 or over.
What is marginal relief for over-65s?
If your income is above the exemption limit but less than twice it, your income tax is capped at 40% of the amount over the limit, if that's better than your normal credits.
How much is the Age Tax Credit?
€245 for a single person and €490 for a jointly or separately assessed couple.
Does the over-65 exemption cover USC?
No. It applies to income tax only, not USC or PRSI.